Marketing and Starbucks Essay

Universiti Utara Malaysia

BPMN3023 STRATEGY MANAGEMENT
GROUP I
Lecturer’s Name: Mdm. Chong Yen Wan

Case 7: Starbucks Coffee Company; The Indian Dilemma

GROUP’S MEMBER | Yap Ai Seok 127746 | Wong Qian Ying 127806 | Yeong Sook Cien 128090 | Chang Choo Woon 128176 | Tiu Siew Mei 128207 |

Tables of Content Current Situation 3 * Current Performance * Strategic Posture Strategic Managers 4 * Board Directors * Top Management
SWOT Analysis External Factor Analysis Summary (EFAS) 6 Internal Factors Analysis Summary (IFAS) …show more content…
| THREATS | | | | | Imitation by competitors | 0.18 | 5.0 | 0.9 | Competitors imitate product offers from Starbucks. | Consumer’s preference | 0.06 | 3.0 | 0.18 | Consumers have the similar choice other than Starbucks. | Hard to absorb coffee culture | 0.04 | 2.0 | 0.08 | Tea had becomes the 1st choice of hot beverage | Price war | 0.08 | 4.0 | 0.32 | Competitors offer cheaper price. | India’s government restriction | 0.07 | 3.0 | 0.21 | Too many rules and regulation need to be followed | | | | | | TOTAL SCORES | 1.0 | | 3.89 | |

Opportunities 1. India’s large market
India was ranked as the fourth - largest economy in the world in term of purchasing power parity. In 2006, the middle class in India was estimated at around 250 million. The India retail market was estimated at US$350 billion, the market was largely unorganized and dominated by small and individually owned business. The reform over the years had resulted in higher growth rates, lower inflation and significant increase in foreign investment in India. 2. Youth’s market
India’s population was also one of the youngest in the world and was to remain the youngest in the coming years. According to the research, the population of Indians in the age of 15-24 years in 2000 was 190 million which increased to around 210 million by 2005. The estimated average age of an Indian in 2020 would be 29 years. The

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